Firm Linked To Framingham Pharmacy Lays Off 790

BOSTON The sister company of the Framingham compounding pharmacy linked to the nationwide fungal meningitis outbreak is temporarily laying off 790 employees.*

Westborough-based Ameridose shares owners with New England Compounding Center, the pharmacy tied to steroids tainted with a deadly fungus.

Ameridose has been under investigation and closed for more than a month, even though inspectors have not found problems with any Ameridose products. Sources say the closure is costing Ameridose and a related marketing firm more than $1 million a week.

In a letter to employees (PDF), Geri Weinstein, the human resources director, says Ameridose hopes the layoffs are temporary, but warns that while Ameridose expects to reopen, it will likely be at “a reduced level.”

According to a spokesman, the company is keeping employees needed to “manage [the] recall that is under way and to implement the recommendations that are expected from the FDA.”

*Correction: An earlier version of this report said the company was laying off all of its staff. We regret the error.